Over the past twelve months, private rental prices increased in all UK countries. In England, there was rental growth of 6.1% (or 5.7% when London was excluded) in the year to January 2024. This is the same as the month before, as December also registered an annual rise of 6.1%. These two figures are the joint-highest annual changes since the data series began in January 2006.
London was the English region with the highest yearly rental growth over the last year, with 6.9%, while the North East experienced the lowest rental inflation of 4.7%.
However, according to Zoopla, London and some other parts of South England have already moved past peak growth as rents start to hit a ceiling of affordability for renters in these areas. Sky-high rents coupled with the cost-of-living crisis are becoming unviable for the average tenant.
Meanwhile, Zoopla states that there is room for further growth in rental markets in other regions. Regarding newly available property rents, the property portal found that the North West experienced the most significant annual percentage increase in England of 10.8% in 2023.
Further Reading: If you need help calculating your investment costs, take a look at our Scottish stamp duty calculator or UK interest rates chart.
